Question on shipping rates with Google Checkout 7.0.3

[AbleMods]

I had a situation with an order today that raised a question in my mind.

Customer paid using Google Checkout and chose FedEx 2-Day shipping. He was quoted 18.47 during checkout so that's what was paid. But my shipping charge from my distributor was 22.40 so I lost nearly 4 bucks on shipping. That almost never happens.

What's odd is I even had FedEx 2-Day configured to add a $ 2 handling fee just to cover any minor differences between distributor rates and my own.

So if I'm understanding everything right, my site told Google Checkout that the rate for FedEx 2-Day should be 18.47.

My question is, did AC7 tell Google Checkout the UPS rate or did it tell Google Checkout the rate INCLUDING the handling fee configured on the shipping method?